Infinera Corp. (INFN, Financial) filed Quarterly Report for the period ended 2012-06-30.
Infinera Corp. has a market cap of $612.7 million; its shares were traded at around $5.87 with and P/S ratio of 1.5.
Total product revenue decreased to $77.8 million for the three months ended June 30, 2012 from $84.4 million for the corresponding period in 2011. Total product revenue increased to $170.2 million for the six months ended June 30, 2012 from $166.9 million for the corresponding period in 2011. Product and related support services revenue that is recognized ratably includes sales of products and services that were deferred under previous accounting standards, prior to our adoption of ASU 2009-13 and ASU 2009-14 as further discussed in Note 2, Significant Accounting Policies, to the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K filed on March 6, 2012, because vendor specific objective evidence of fair value had not been established for the undelivered elements. Total ratable revenue levels decreased to $0.5 million for the three months ended June 30, 2012 from $0.8 million for the corresponding period in 2011. Total ratable revenue decreased to $1.1 million for the six months ended June 30, 2012 from $1.7 million for the corresponding period in 2011. These decreases were due to an overall reduction in sales of products and services that were deferred following our adoption of ASU 2009-13 and ASU 2009-14.
Total services revenue increased to $15.1 million for the three months ended June 30, 2012 from $10.8 million for the corresponding period in 2011 primarily reflecting increased revenue of $1.6 million from deployment services revenue, $1.0 million from extended hardware warranty, $1.0 million from spares management related services, $0.3 million from software subscription revenue, $0.2 million from training revenue, $0.1 million from managed services revenue and $0.1 million from first line management services revenue. Total services revenue increased to $26.9 million for the six months ended June 30, 2012 from $20.2 million for the corresponding period in 2011 primarily reflecting increased revenue of $3.2 million from deployment services revenue, $1.5 million from extended hardware warranty revenue, $1.3 million from spares management services revenue, $0.4 million from training revenue and $0.3 million from first line management services revenue. As our installed customer base grows, we expect to continue to grow our extended hardware warranty and spares management services revenues in future periods.
Net cash used to fund working capital was $4.5 million for the six months ended June 25, 2011. Accounts payable decreased by $7.8 million due to lower inventory purchases during the period. Accrued liabilities decreased by $4.5 million primarily due to reduced levels of compensation and commission related accruals. This was partially offset by a decrease in inventory of $13.3 million primarily due to increased shipments and improved supply chain management and a decrease in accounts receivables of $6.1 million primarily driven by lower level of sales during the first half of 2011.
Net cash provided by investing activities in the six months ended June 30, 2012 was $12.9 million compared to net cash used of $16.3 million in the corresponding period of 2011. Investing activities for the six months ended June 30, 2012 included net proceeds of $32.8 million from purchases, maturities, calls and sales of investments in the period partially offset by $19.8 million of capital expenditures. Investing activities for the six months ended June 25, 2011 included net proceeds of $0.5 million from purchases, maturities, calls and sales of investments in the period and $17.3 million of capital expenditures.
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Infinera Corp. has a market cap of $612.7 million; its shares were traded at around $5.87 with and P/S ratio of 1.5.
Highlight of Business Operations:
Total revenue decreased to $93.5 million for the three months ended June 30, 2012 from $96.0 million for the corresponding period in 2011. For the six months ended June 30, 2012, total revenue increased to $198.2 million from $188.8 million for the corresponding period in 2011. Revenues in the three and six months ended June 30, 2012 were negatively impacted by lower levels of DTN sales, as existing customers began to transition their high-capacity network deployments to our new DTN-X platform. Although we completed our first DTN-X shipments in the second quarter of 2012, we did not recognize revenue on these shipments in the period. We expect to recognize our first DTN-X revenues in the third quarter of 2012. Revenues for the three and six months ended June 30, 2011 were negatively impacted when customers who required higher capacity network solutions in advance of the availability of our 40 Gbps and 100 Gbps systems purchased competitor products for portions of their networks.Total product revenue decreased to $77.8 million for the three months ended June 30, 2012 from $84.4 million for the corresponding period in 2011. Total product revenue increased to $170.2 million for the six months ended June 30, 2012 from $166.9 million for the corresponding period in 2011. Product and related support services revenue that is recognized ratably includes sales of products and services that were deferred under previous accounting standards, prior to our adoption of ASU 2009-13 and ASU 2009-14 as further discussed in Note 2, Significant Accounting Policies, to the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K filed on March 6, 2012, because vendor specific objective evidence of fair value had not been established for the undelivered elements. Total ratable revenue levels decreased to $0.5 million for the three months ended June 30, 2012 from $0.8 million for the corresponding period in 2011. Total ratable revenue decreased to $1.1 million for the six months ended June 30, 2012 from $1.7 million for the corresponding period in 2011. These decreases were due to an overall reduction in sales of products and services that were deferred following our adoption of ASU 2009-13 and ASU 2009-14.
Total services revenue increased to $15.1 million for the three months ended June 30, 2012 from $10.8 million for the corresponding period in 2011 primarily reflecting increased revenue of $1.6 million from deployment services revenue, $1.0 million from extended hardware warranty, $1.0 million from spares management related services, $0.3 million from software subscription revenue, $0.2 million from training revenue, $0.1 million from managed services revenue and $0.1 million from first line management services revenue. Total services revenue increased to $26.9 million for the six months ended June 30, 2012 from $20.2 million for the corresponding period in 2011 primarily reflecting increased revenue of $3.2 million from deployment services revenue, $1.5 million from extended hardware warranty revenue, $1.3 million from spares management services revenue, $0.4 million from training revenue and $0.3 million from first line management services revenue. As our installed customer base grows, we expect to continue to grow our extended hardware warranty and spares management services revenues in future periods.
Net cash used to fund working capital was $4.5 million for the six months ended June 25, 2011. Accounts payable decreased by $7.8 million due to lower inventory purchases during the period. Accrued liabilities decreased by $4.5 million primarily due to reduced levels of compensation and commission related accruals. This was partially offset by a decrease in inventory of $13.3 million primarily due to increased shipments and improved supply chain management and a decrease in accounts receivables of $6.1 million primarily driven by lower level of sales during the first half of 2011.
Net cash provided by investing activities in the six months ended June 30, 2012 was $12.9 million compared to net cash used of $16.3 million in the corresponding period of 2011. Investing activities for the six months ended June 30, 2012 included net proceeds of $32.8 million from purchases, maturities, calls and sales of investments in the period partially offset by $19.8 million of capital expenditures. Investing activities for the six months ended June 25, 2011 included net proceeds of $0.5 million from purchases, maturities, calls and sales of investments in the period and $17.3 million of capital expenditures.
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